Penny Stocks

Should you watch these Canadian stocks under 50 cents?

  • January 13, 2023 03:21 AM EST | Tamnna
 Should you watch these Canadian stocks under 50 cents?

287 There are plenty of Canadian stocks under 50 cents, however, potential investors must note that these stocks are generally highly volatile

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5 Hot Canadian Penny Stocks To Buy In March

5 Hot Canadian Penny Stocks To Buy In March

Source: Vitalii Vodolazskyi, Shutterstock Investors often seek out low-priced micro- and nano-cap stocks which have a shot at growth. The key in finding such penny stocks often lies in their recent financials and stock performances. So here is a loo...

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Cielo Waste (CSE:CMC) Up 1000% In A Year: A Penny Stock To Buy!

Cielo Waste (CSE:CMC) Up 1000% In A Year: A Penny Stock To Buy!

Source: Belish, Shutterstock Summary Scrip price of Cielo Waste Management Corp. witnessed an exponential growth of 81 per cent on Friday The surge came after the company announced a major sale deal of more than 900,000 liters. Cielo reported...

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ClearStream Energy (TSX:CSM) Skyrockets Over 170% After Contract Deals

ClearStream Energy (TSX:CSM) Skyrockets Over 170% After Contract Deals

  • February 26, 2021 11:26 AM EST | Anuj

Source: Oil and Gas Photographer, Shutterstock   ClearStream Energy Services Inc. (TSX: CSM) stock skyrocketed over 171 per cent as the macro-cap company announced on February 24 that it has won new project awards and renewed old contracts fro...

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Koss Gets A Reddit Bump, Stocks Fly High

Koss Gets A Reddit Bump, Stocks Fly High

Source:  ranjith ravindran, Shutterstock Summary Scrips of Koss Corporation (NASDAQ: KOSS) surged 42 percent in morning trade. It was among the top volume leaders on Nasdaq. Company revenues grew by 18.4 percent to US$4.9 million in Q4. ...

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Why Are Sypris Solutions (SYPR) Stocks Rising?

Why Are Sypris Solutions (SYPR) Stocks Rising?

  • February 25, 2021 07:31 AM EST | Anuj

Source: Phonlamai Photo, Shutterstock Summary Stocks of Sypris Solutions have skyrocketed over 190 per cent intraday and ended the trading session with a surge of more than 90 per cent on Wednesday. This whopping rise came after the company&rs...

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High Tide (TSXV:HITI): A Canadian Growth Stock To Buy

High Tide (TSXV:HITI): A Canadian Growth Stock To Buy

  • February 24, 2021 09:22 AM EST | Anuj

Cannabis penny stocks have been blooming this spring season as investors get high on their bright future. With the US and Mexico likely to legalize the marijuana industry this year, these micro-cap stocks are placed at an attractive position and ha...

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ReTo Eco-Solutions & ATIF Holdings: 2 Chinese Penny Stocks To Buy

ReTo Eco-Solutions & ATIF Holdings: 2 Chinese Penny Stocks To Buy

ising growth prospects as these sectors are likely to grow further. Chinese companies ReTo Eco-Solutions Inc. (NASDAQ: RETO) and ATIF Holdings Limited (NASDAQ: ATIF) have been drawing considerable investor interests of late. While the former spe...

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3 Dividend-Paying Canadian Penny Stocks To Invest In 2021

3 Dividend-Paying Canadian Penny Stocks To Invest In 2021

  Canadian investors often seek out dividend-paying stocks in the hopes of steady payments. At the same time, some shareholders also go down the route of penny or micro-cap stocks for their smaller prices. These two preference come together in ...

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3 Hot Canadian Penny Stocks To Buy

3 Hot Canadian Penny Stocks To Buy

Three industries have been pushing the TSX Composite Index up this year – cannabis, electric vehicle components, and energy. We will take three red hot penny stocks from each of these segments that could deliver a three-digit growth this year. ...

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Penny Healthcare Stock Aeterna Zentaris (TSX:AEZS) Up 200%

Penny Healthcare Stock Aeterna Zentaris (TSX:AEZS) Up 200%

Summary Stocks of Aeterna Zentaris Inc zoomed multiple folds higher on Monday, with nearly 200 per cent. The biopharma stock also achieved its 52-week high of C$4.63 yesterday, with a one-year return of 187 per cent. The FDA-approved medical t...

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Frequently Asked Questions

Penny stocks can be rewarding if one can carefully time the market and trade these low-priced stocks when their prices rise due to some evolving market situation. However, one should note that the risk factor in penny stocks is comparatively higher than small-cap, mid-cap and large-cap stocks.

Penny stocks tend to be more volatile than large cap or mid cap stocks, generally speaking. For the most part, these are stocks of comparatively newer companies. Some investors don’t mind taking their chance on losing a few pennies for an opportunity to own the next FAANG stock for real cheap. This approach might be akin to buying a lottery ticket or having a go at a slot machine. It should never be one for a serious investor. Also, scams may exist in this space.

As the name suggests, penny stocks are stocks selling at low prices and generally trade under $5. Often, retail investors look for penny stocks in hopes of earning 10x or more returns on the amount invested. Investing in penny stocks is risky compared to small-cap or large-cap stocks as they belong to companies with not-so-strong fundamentals. There are a lot of factors to assess before investing in penny stocks, and you can consider the following. 1. Check the number of shares available. 2. See the liquidity of shares. 3. Check risk dilution (see if there are too many shares outstanding).

A penny stock may spike if there is a buzz around it, for example, if users on Reddit or some other platform are talking about it. In other cases, if a bigger company is contemplating acquiring the company that the penny stock represents, this may lead to its demand, and hence, price hike. Sometimes, an influencer like a billionaire investor dropping a tweet on the penny stock may also lead to amateur investors picking it. That said, a sudden spike may be followed by a steep decline in the price of a penny stock, which mandates extreme caution. It may be better to rely on a stock's fundamentals like the company's products/services and its market share before making any investment decision.

Penny stocks can be traded via any trading platform and account. Investors can add funds to their accounts in order to buy the required quantity of any penny stocks. It is necessary to closely track the price movements to make a profit if it attains target price or sells if one thinks price might fall to minimize losses.

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